Arizona lawmakers OK Indian casino proposal

Scott Thomsen

Tuesday, May 7, 2002 | 9:42 a.m.

PHOENIX -- The Senate on Monday approved a plan that could extend casino operations on Indian reservations for up to 29 years, but the proposal failed to get enough votes to protect it from a possible referendum election.

Senators approved the bill (SB1001) by a 19-8 margin, one vote short of the two-thirds super majority needed to enact an emergency clause that would give it ballot protection and put it into effect immediately upon Gov. Jane Hull's signature.

"If you're interested in limiting gambling in Arizona this is the most practical way, it is the most achievable and it is the most reliable," Sen. Herb Guenther, D-Tacna, said. "It is probably the most limiting of any bill or initiative we will see this year. This is the best we can achieve."

The plan is the outline of an agreement among Hull and the tribes that would put more slot machines into play and allow Las Vegas-style blackjack. The state would have regulatory authority over casino operations and receive up to 8 percent of the profits. The deal would last for up to 29 years.

Opponents have criticized the length of the agreement, access to automated teller machines at casinos and the tribes' ability to withhold from the public how much they make from gambling. They have tried to slow down action on the bill, which has led the tribes to start work on a ballot initiative as a backup plan in case the bill does not win approval.

The bill now moves to the House for consideration, but representatives may not begin their deliberations until they finish work on the state's budget.

Hull's gambling adviser, Mike Bielecki, said he hopes to draw a two-thirds majority in the House and add friendly amendments clarifying profit disclosure and the amount of time available for renewal negotiations, which could shorten the deal to 23 years.

Such changes would allow the Senate to vote again and give the governor another chance at a super majority.

"You play it out. It's not over until it's over," Bielecki said. "This thing has a tremendous amount of support."

If the Legislature passes the bill without ballot protection, officials from the state's horse and dog racetracks say they will circulate petitions to refer the measure to the ballot. They would need signatures from about 50,000 registered voters to force an election.

"For quite a while we've figured this thing was going to the ballot," Jack LaSota, an attorney for Tucson Greyhound Park, said. "Voters will get to decide."

Voters could have several choices.

The tracks are already collecting signatures for an initiative that would ask voters to let the tracks operate slot machines in exchange for 40 percent of the take. The tracks' plan also would require Indian tribes to tell the public how much money their casinos make and share a full 8 percent of their profits with the state.

To qualify, they need to gather about 101,000 signatures by July 4.

The Colorado River Indian Tribe is nearly ready to submit signatures to place another measure on the ballot. It would increase the number of slots being operated and allow many other types of table games, such as craps and roulette, while providing 3 percent of the profits for education and health care.

The 17 tribes now working with Hull have been preparing an initiative of their own as a backup plan, but have not said what it might include. They met with Hull Monday to review the situation.